C202 WGU: CHAPTER 9: BASE COMPENSATION: TEST QUESTIONS
WITH ACCURATE ANSWERS
1) Point Factor Method (Job Evaluation) -- Answer ✔✔ Uses a set of compensable
factors to determine a job's value.
2) compensable factor -- Answer ✔✔ any characteristic used to provide a basis for
judging a job's value.
3) It is best to use only a few compensable factors, which typically include four
categories: -- Answer ✔✔ - Skill. Including experience, ability, and education.
- Responsibilities. Including both fiscal and supervisory duties.
- Effort. Both mental and physical.
- Working conditions. Including location, hazards, environmental extremes
(e.g., working in a freezer or near a furnace).
4) Hay Group Guide Chart-Profile Method -- Answer ✔✔ A point-factor system is
used to produce both a profile and a point score for each position.
, 5) The Hay Group method analyzes jobs based on four main factors: -- Answer ✔✔
- know how
- problem solving
- accountability
- working conditions
6) Position Analysis Questionnaire (PAQ) -- Answer ✔✔ a job analysis technique
that is also useful in evaluating jobs for compensation purposes.
7) Job Pricing/Market Pricing -- Answer ✔✔ the generation of salary structures and
pay levels for each job based on the job evaluation data.
8) The three most common job pricing systems are: -- Answer ✔✔ single-rate
system, pay grades, and broadbanding
9) single-rate pay system -- Answer ✔✔ a single market-determined rate is paid for
the job (unions like these)
10) pay grade -- Answer ✔✔ the range of possible pay for a group of jobs
11) Broadbanding -- Answer ✔✔ the use of very wide pay grades (for example,
salary ranges of plus or minus 30 to 60 percent of the salary midpoint) to
increase pay flexibility. Broadbanding was popularized in the 1990s to support
flatter, faster, de-bureaucratized organizational cultures and to empower
managers to make compensation decisions.
12) Efficiency wages -- Answer ✔✔ the economics term for the idea that above-
market wages raise labor productivity and/or decrease employer costs enough to
pay for the cost of the higher wages.
WITH ACCURATE ANSWERS
1) Point Factor Method (Job Evaluation) -- Answer ✔✔ Uses a set of compensable
factors to determine a job's value.
2) compensable factor -- Answer ✔✔ any characteristic used to provide a basis for
judging a job's value.
3) It is best to use only a few compensable factors, which typically include four
categories: -- Answer ✔✔ - Skill. Including experience, ability, and education.
- Responsibilities. Including both fiscal and supervisory duties.
- Effort. Both mental and physical.
- Working conditions. Including location, hazards, environmental extremes
(e.g., working in a freezer or near a furnace).
4) Hay Group Guide Chart-Profile Method -- Answer ✔✔ A point-factor system is
used to produce both a profile and a point score for each position.
, 5) The Hay Group method analyzes jobs based on four main factors: -- Answer ✔✔
- know how
- problem solving
- accountability
- working conditions
6) Position Analysis Questionnaire (PAQ) -- Answer ✔✔ a job analysis technique
that is also useful in evaluating jobs for compensation purposes.
7) Job Pricing/Market Pricing -- Answer ✔✔ the generation of salary structures and
pay levels for each job based on the job evaluation data.
8) The three most common job pricing systems are: -- Answer ✔✔ single-rate
system, pay grades, and broadbanding
9) single-rate pay system -- Answer ✔✔ a single market-determined rate is paid for
the job (unions like these)
10) pay grade -- Answer ✔✔ the range of possible pay for a group of jobs
11) Broadbanding -- Answer ✔✔ the use of very wide pay grades (for example,
salary ranges of plus or minus 30 to 60 percent of the salary midpoint) to
increase pay flexibility. Broadbanding was popularized in the 1990s to support
flatter, faster, de-bureaucratized organizational cultures and to empower
managers to make compensation decisions.
12) Efficiency wages -- Answer ✔✔ the economics term for the idea that above-
market wages raise labor productivity and/or decrease employer costs enough to
pay for the cost of the higher wages.
